After all that, SRA confirm the Accountants Report to stay

After their lengthy consultation period the SRA have announced that the Accountant’s Report (form AR1) is to remain but with the following to be implemented over the next couple of years:

·         For firms whose income is 100% Legal Aid they will be exempt from requiring an Accountants Report – proposed change to commence from October 2014

·         Only qualified reports to be submitted to the SRA – Accountants Reports will still need to be prepared but only qualified reports sent to the SRA from October 2014

·         The AR1 report is to be simplified – the fully revised format to be issued April 2015

·         Proposed amendments to the Accounts Rules criteria for qualified reports – April 2015

·         Considering whether other categories of firms might be excluded from these requirements – April 2015

·         Full review of the Accounts Rules – due April 2016